TMI Blog2016 (9) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in the case of S.Hastimal Vs. CIT [1962 (12) TMI 60 - MADRAS HIGH COURT]. In the present case, as already seen that the donors been accepted. The source of the donors cannot therefore be gone into in the assessment of the Assessee. Therefore, of the view that the addition made u/s.68 in the facts and circumstances of the present case cannot be sustained. The same is directed to be deleted. The appeal of the Assessee is allowed. - ITA No.157/Ran/2015 Assessment Year :2010-11 - - - Dated:- 16-9-2016 - Shri N.V.Vasudevan, J. Appellant by: Shri Devesh Poddar, Advocate Respondent by: Shri Chaudhury Oraon, DR ORDER This is an appeal by the assessee against the order dated 20.08.2015 of Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been declared at ₹ 1,49,100/- on a turnover of ₹ 6.90 lakh i.e. net profit is @ 21.61% of turnover. 4. As the rate of net profit shown in case of the donors was abnormally high, the AO issued summons u/s. 131 of the Act were issued to all the three donors for personal appearance and it was also specifically mentioned in the summons to produce evidence to prove the income earned during the year as shown in the computation of income. In response to the summons Sri Sunil Kr. Jagnani only appeared whose statement on oath was recorded. Statement on oath mainly revealed that Sri Sunil Kr. Jagnani runs a Kirana Shop at Chass having turnover of around ₹ 5 lakhs. His family consists of himself, wife and three school going ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of the Act, and ₹ 3 lakhs was added to the total income as unexplained cash credit u/s. 68 of the Act. 6. On appeal by the Assessee, the CIT(A) confirmed the order of the AO agreeing with the view of the AO. Aggrieved by the order of the CIT(A), the Assessee has preferred the present appeal before the Tribunal. 7. I have heard the submission of the learned counsel for the Assessee who drew my attention to the evidence in the form of return of income of the donors which was accepted by the Assessing Officer of the donors. He submitted that the revenue authorities in disbelieving the explanation of the Assessee with regard to gifts received have attempted to examine the source of the donors in the assessment of the donee, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the identity of the creditor, his capacity to lend and the genuineness of the transaction. The assessee cannot be further required to prove the source of the source of the money out of which gift was given as laid down by the Hon ble Madras High Court in the case of S.Hastimal Vs. CIT 49 ITR 273 (Mad). In the present case, I have already seen that the donors been accepted. The source of the donors cannot therefore be gone into in the assessment of the Assessee. I am, therefore, of the view that the addition made u/s.68 of the Act, in the facts and circumstances of the present case cannot be sustained. The same is directed to be deleted. The appeal of the Assessee is allowed. 9. In the result, appeal of the assessee is allowed. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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